The latest economic review by the Reserve Bank of Fiji has revealed the global economy will enter into a recession this year as expected by the International Monetary Fund.

The latest economic review by the Reserve Bank of Fiji has revealed the global economy will enter into a recession this year.

The review, as expected by the International Monetary Fund says following almost a decade of positive economic growth, the domestic economy is now forecast to fall into a recession.

This as the COVID-19 pandemic has raged through the global economy generating severe economic disruptions and inflicting serious human suffering along its path.

It says the magnitude of the contraction depends on how long the pandemic lasts and the extent of local contagion.

The RBF says the main transmission will be through the tourism industry and cessation of economic activity due to appropriate precautionary measures taken by the Government and the general population.

The halt in tourism activity and the general decline in incomes and consumption appetite will also negatively affect Government revenue and have spillover effects to all other sectors in the economy.

Cumulative to February, visitor arrivals fell by 0.7 percent.

The review also reads Fiji’s tourism activity is expected to completely cease from March onwards due to travel restrictions, flight cancellations, diminished travel appetite and falling incomes in source markets.

As at 27 March, liquidity was around $615.2 million, owing to an increase in currency in circulation and a decline in foreign reserves.

Amongst other sectoral outcomes, pine production declined up to February (-40.2%) which led to a decline in woodchip (-27.0%) and sawn timber (-31.4%) production.

As per the RBF’s Job Advertisement Survey, the number of jobs advertised contracted by 27.4 percent on an annual basis up to February.

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